Problem regarding the expected year-end dividend

Reference no: EM131015583

A stock with a required rate of return of 10 percent sells for $30 per share. The stock's dividend is expected to grow at a constant rate of 7 percent per year. What is the expected year-end dividend, D1, on the stock?

a. $0.87

b. $0.95

c. $1.02

d. $0.90

e. $1.05

Reference no: EM131015583

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